Sasbadi Annual Report 2020

MATERIALITY ASSESSMENT Part of our ongoing effort is to identify, assess and prioritise sustainability matters that are relevant and significant to the Group and our stakeholders. Organising and reviewing these sustainability matters would enable the Group to manage them more effectively. As such, they are categorised into the three pillars of sustainability that is the EES. It is appropriate to note here that the impact of the COVID-19 pandemic highlights the importance of dynamic materiality. The Group has seen certain EES issues, particularly those related to managing human resources such as employee health, safety and well-being, presenting heightened risks to the Group’s operation and sustainability. Management’s timely response in adopting various measures to address these matters proved crucial to ensure the safety of our employees and our business continuity. The impact of the pandemic as well as the Group’s commitments and practices across the material EES matters are further elaborated in the following sections. SOLIDIFYING ECONOMIC PERFORMANCE The pandemic has caused huge disruptions to the Group’s operations, requiring Management and BOD to stay vigilant and act responsively to ensure our business continuity. As such, fundamental reviews of the Group’s business and its strategies against the operating environment were conducted. Regular and ad-hoc meetings with respective heads of departments were held to formulate strategies that effectively catered to the market’s current needs. Under the current circumstances, it has become clear that being adaptive and responsive is key to the Group’s relevance and sustainability. Customers • Product quality • Order fulfilment matters • End-user needs • Pricing • Regular communication with clients • Feedback sessions • Community and networking events • Surveys for product research and development Bankers • Financial health, solvency • Covenants compliance • Financial health review • Meetings and engagements Our Community • Community development • Social issues • Impact of business operations • Transparency and accountability • Industrial membership • Corporate social responsibility programmes and activities related to education, society and associations • Requests and enquiries Suppliers and Service Providers • Credit terms • Pricing • Order fulfilment matters • Reliability of supply • Business ethics • Products and services proposals • Evaluation and performance reviews • Contract negotiations • Delivery schedules • Meetings and engagements Areas of Interest Forms of Engagement Stakeholders Regulatory, Government and Statutory Bodies Shareholders/Investors Employees • Regulatory and governance compliance • Labour practices • Occupational safety and health • Inspections/Inquiries by authorities • Necessary reporting • Meetings and engagements • Training programmes • Group financial performance • Business strategy • Potential market size • Dividend • Corporate governance, transparency, ethics and integrity • Annual and extraordinary general meetings • Annual and quarterly reports • Bursa announcements • Our website • Press release and coverage • Performance management • Learning and development • Compensation • Workplace safety • Working environment • Balanced lifestyle • Circulation of internal policies and procedures • Staff induction and appraisals • Remuneration packages • Training/guidance • Employee engagement activities (continued) SUSTAINABILITY STATEMENT 28 SASBADI HOLDINGS BERHAD